hearings on it in the house. there's that, but in terms of the senate, republicans getting on board with this, i don't think so >> thanks. no laughing matter it was a wry laugh we'll see if they do tweak anything like we have the time kat davidson, ylan mui and thank you sofor joining me it's time for "power lunch" which begins right now. >> thank you, kelly. we'll see you in just a minute it's an earnings field rally up and away from year. lyft down from its ipo and wall street bullish about its future. should you hit the buy now and everyone making money off of your data except for you where it's ending up and how it's being used. "power lunch" starts right now let's get a check on the markets at this hour it's an earnings field rally

the dow is up half a percent the s&p 500 surging past the all time closing high. very close to its record and that would be 2940 2932 right now nasdaq crossing above its closing high up 1.25%. kell >> full team coverage of this. bob pisani down on the floor of the new york stock exchange. dominic chu here on the one big theme emerging from the latest round of results and morgan brennan with the key results let's begin with you. >> new highs for the s&p 500 we've been waiting for it a long time, so now, what happens tomorrow where do we go from here the s&p has moved to new highs on the back of four major developments number one, earnings stabilizing and that's what's moving it today. recession fears are fading china has been bottoming and europe is at least stable and of course, the long story, the fed has been remaining accommodative. what happens now we have had mostly banks and

industrials reporting so far early signs are positive, you see that today to keep the momentum going, we need to hear from other sectors and i'm talking technology, energy and especially health care remember, health care is suddenly the problem child for the markets. i want to know more about their opinions on this the market is being pushed up right now by a small group of super performers mostly tech names. there's only 13 new highs on the s&p 500 right now. so the rally needs to broaden out a little bit more. the volume and the volatility are surprisingly low the issue is whether these new highs we're seeing will draw greater interest from the investing public we've seen so far and this is the most unloved rally ever but if this rally is going on for five years, we'll see if we can change that around a little bit melissa, back to you. >> bob, thank you. bob pisani dom chu looking at the big trends emerging so far dom? >> there are a lot of them developing but right now that's

today came with consumer product companies like coca-cola and proctor and gamble we're talking about sales growth but a very specific kind of sales growth that's organic sales growth sales growth, not due to acquisitions, not due to merger activity, not due to currency issues and everything else so this is pure play, existing business strategy. your company is actually doing better sales growth. what you're seeing there is prok ter and gamble and coca-cola for very mature consumer staples companies, organic sales growth is nothing to laugh at that's a good sign with proctor and gamble, it's been such a strong performer especially since the lows back on december 24th third consecutive of those organic sales growth gains they revised the full year organic growth forecast, the

higher end of the previously stated range and you're seeing it driven by a lot of parts of the business especially with cosmetics and beauty products. that's a trend we've talked about before but you can actually see revenue growth not because they are actually buying it, but they're actually getting it on their own is something we should be watching and the reason why perhaps consumer staples companies are trading at somewhat of a premium to the rest of the overall market. >> add the notion of prices are increasing for these two companies as well as many other companies reported earnings and that is a great sign for companies, particularly, if you're worried about a slowdown, growing profit margins gives you a cushion. >> not just that the other side of the equation even more key is not only raising prices but guess who's paying them? the consumers. and they are able to pay them and willing to pay them, which is the case with companies like proctor and gamble and other companies as well.

they can at least hang their hat on for the time being but if it stays that way, that's the real key. >> great sign. dom, thanks. appreciate it. united technologies helping boost the dow as well. lockheed martin. higher after a strong earnings report morgan brennan is here to talk about what's propelling these companies. same stuff we're talking about >> it is not just consumer products companies. organic sales growth is a big part of the united technologies story today. up 8 for the quarter a beat and raise for united tech if you take nothing else away from me in industrials earnings so far, aerospace and defense is, pardon the pun, taking off like a rocket ship and that's what's playing out in different names. that was the case in united tech and rockwell propelled the numbers there and whitney with the jet engines. all despite the 737 max grounding for boeing, which the

company does expect to shave like 10 cents off of earnings this year. even with that, expected to hit their targets. a lot of this is commercial after-market sales but also military sales because this is the company that is making engines, for example, the f-35 fighter jet for that lockheed martin plane, odus saw a little bit of growth. carrier, which is the h-vac and air-conditioning segment for united technologies a bit weak keep in mind though, the company is looking to split those in three businesses and you say they're on track to do that by the end of this year, which brings me to lockheed martin as well because that was also beating a raise. f-35 fighter sales, production ramps there, the munitions and defense systems and increases in space, really strong record backlog for that company, yes, domestic defense spending and the growth we've seen there, powering sales for the company but also international as it does sell more of those fighter

jets and other subpoenas to our international allies. >> should we look at lmt and think of it like a one off because of the delivery of the f-35 sustainable in terms of this >> great question and f-35 is about a quarter of their sales and ceo and chairman on the call said about half of those f-35 sales over the coming years will go to their international allies keep in mind though, huge list of suppliers including other names like north that reports tomorrow the fact they saw these double digit increases across all business segments bodes well for the other aerospace and defense players, many of which will get results from tomorrow. >> already been a big gain, by the way, if you look at the ita, the shares >> it's not priced >> what's interesting is it's topped out for right now not made the new highs like the s&ps so you wonder if there's a catch-up trade to be had for the industry group strong since the trump election let alone the lows from december 24th.

>> holding it back >> you could argue that. >> thanks, guys. morgan and dom. twitter shares surging for the best day since october 2017. social media giant's move to clean up the platform appears to be working and scrapping monthly active users, instead focusing on increased monetizable daily active users known as mdasus erin kessler julia, i'll start with you what did you take away from this earnings report and what's behind, you think, this 15% gain if you look year on year, the user growth wasn't really that strong >> well, look. so i think the key thing here is last quarter, twitter announced they'll not care much about active monthly users because that's not a good measure of engagement and the monthly active users in consistent decline and they introduced this idea of the monetizable daily

active users this quarter, those mdaus as we're calling them increased by 11% over the year ago quarter. consistent growth in the daily active users and twitter says this is really a key measurement of engagement. people are coming back every single day because they made the service easier to use, it's easier to follow conversations, and there isn't as much mess on the platform there aren't as many bots or harassment and trolling, which had been a big issue i think it shows jack dorsey's commitment seems to be paying off. >> i mean, erin, i'll go to you now. the big increase that the new metric if you look at monthly active users, the old metric was basically flat year on year. that was the metric i was referring to aaron, it's really quite amazing they're able to decide mda use from now on and poof, we've got double digit percent growth in mdaus. >> yeah. i mean, i would give them

credit i think amu is the right metric to track for twitter even though the ratio, it wasn't that great as we saw last quarter but to your point, the growth i would say was strong especially internationally, about 12% year over year for daus, it was a little bit softer on 8% and 1 million but worth low for twitter going into the quarter decent revenue upside and even stronger upside on the quarter here. >> operating ecxpenses, going t grow at double digit percent, aaron.

>> kind of why they're spending faster growth this year but it's a concern with the platt form that continues to be the top priority and i think we'll watch that closely overall though, we're kind of neutral on the stock here and around 507 times earnings. growing about 18% this year. so we'd like a better entry point. >> julia, i think that's a good question as twitter will continue to fight these, you know, these issues about policing content and continue to hire more and more people, at what point do the economics of the platform not look as good as five years ago? >> well, look, kelly, i think both twitter and facebook rely on a combination of artificial intelligence and people to catch this offensive content or trolling or whatever we want to characterize the mess that has within been -- been on twitter they can't afford to skip that kind of investment but need to

improve the platform because that's going to be how they make it more accessible and the kind of service that people want to return to day after day. so they say their expenses, their operating expenses will increase 20% this year they didn't change that from last quarter, so this quarter's outlook is consistent with last quarter and i think that's one reason we see the stock up so much is that analysts have incorporated that into estimates and seems reasonable if they're going to be able to actually reach more consumers and also, kelly, reassure advertisers this is a safe place for them to be >> aaron, is there a read-through from twitter with the earnings coverage later on with facebook, et cetera >> yes, we continue to hear overall good in the ad space on digital. at the end of the day, very few places for advertisers to go online google, facebook, and snap the benefit as well and newer

players out there as well. but we continue to see good growth in q-2 here. >> thank you both. we appreciate it aaron kessler and julia boorstin on track to close at a new record high. one that is not joining on the rally. lyft down more than 20% since the opening went public and the analysts are getting bullish on the stocks talk twoun o one of them next o "power lunch." your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory.

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go to xfinity.com/moving to get started. initiating coverage on lyft, analysts pretty bullish. the ride sharing company as a buy with the $75 price target saying lyft with a long runway for growth the analyst behind the call, michael graham welcome to the show. >> hi, thank you >> lyft had some erratic trading in terms of being a publicly traded company and ipo watchers with the likes of kathy and smith at renaissance, it's difficult to find the right price in the market because of the brand-new industry but you were able to come out with initiation, a model. what are some of the potential shortfames with t shortfalls of this model with your view? >> i think it's not uncommon to have these ipo stocks be

volatile when they first come out. i actually look at the lyft model the other way to be honest i think there's probably more room for upside in the model than there is for downside i think the company has talked about its prospect i think it's been pretty conservative and reflected in our numbers. give you a couple of quick examples one is that we only expect lyft to add, get up to 33 million active riders by 2023 from 18 million today. at 33 million, several years from now, that's a small number relative to 280 million smartphone users in the united states and the second thing is that when we look at rider engagement, we're really only looking for lyft, the average lyft rider to go from 3.3 monthly rides per user up to about 4 monthly rides per user in 2023 and i think that's also conservative because i don't know about you, but i don't know anybody who's not pretty dramatically increasing their

usage of ride sharing networks. >> that's true but to get from the 3.3 rides per month to 4, what needs to happen does price need to come down i know more and more people who take more but they will toggle between lyft and uber and take whichever one is cheaper because at the end of the day, this is a commodity service, doesn't matter if it's lyft or uber or any of the other ride shares that are out there >> it's a good point and one of the things we outline in our note today, that in most markets in the united states, lyft operates in mostly a duopoly and what we've seen over time is duopolies work pretty well and even oligopolies with ups and fedex, several over time and you can really have constructive markets when these companies start to kind of grow together we think lyft right now is, has

been gaining share in most of the u.s. cities over the last couple of years. we'll see if that continues but one of the key takeaways is the growth in the category really should be quite strong and if there are market share fluctuations underneath that, we think lyft will be okay relative to all of that. >> does lyft make money on every single ride and i ask because of the other duopolies. i bet if we went to the early days, they wouldn't have been delivering packages and subsidizing every single delivery to the consumer training the consumer to want to deliver a package for below what it costs >> there are a couple of inefficiencies in lyft's model right now. one of the biggest ones here over the short-term is what they're spending on insurance costs. you know, we think the company is spending roughly 20 points of revenue on insurance right now and we think that can get cut in half over time as the company gets more efficient at purchasing insurance and gets

better at routing the vehicles into lower risk routes so there are fewer accidents. as we look ahead to the longer term, one of the things we think can happen that can really be a benefit to this industry is as we shift to electric vehicles and autonomous vehicles, electric vehicles have fewer moving parts, most cases, cheaper fuel, that brings those costs down and when we get to self-driving, you obviously can start to substitute a machine for a human driver and that can also bring costs down as well. >> i'll wait until we get there. i get the economics when there's no driver but we're a little ways off thank you for joining us appreciate it. michael graham with $75 buy rating dow up nearly 150 points closing in on its own record thanks to strong earnings but boeing rorepts tomorrow. the biggest price impact will it propel the blue chip to a fresh high "trading nation" is next

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after weeks of expected sales of existing homes, sale of newly built homes. breaking down from washington. diana? >> this has mortgage rates written all over it.

sales of newly built hopes romee 4.5% and in the positive 3% higher compared with a year ago. these numbers based on signed contracts in march and march was a huge month for mortgage rates. remember rates spiked in november for over 5% and then started coming down to start and then in march, that 50 basis points to right around 4%. you have to believe this played a big role in it ceo ryan marshall certainly thinks so. marshall said falling rates have expectations changing again with some calling for a reacceleration of housing demands. back to you. >> diana, thank you. diana olick. time now for "trading nation" with boeing said to report before the bell tomorrow in the first earnings bell 737 max grounding with the stock in march what should investors expect fairfield strategies and then mark peppers from strategic wealth partners. what do you think of the chart >> it's a long-term uptrend for

sure but more recently, some consolidation with the uptrend with the rising 200 day moving average. i think with boeing, into earnings, we really need to be watching in support of that 200 day moving average and initial and minor resistance at the 50 day moving average were a technical catalyst above the 50 day moving average is positive. >> what number, sorry? >> i believe, i actually don't know >> not meant to be a pop quiz. traders know thanks how do you think boeing's position >> we invest in companies with a good strong growth story that's reasonably price and boeing definitely fits the criteria of a long-term play but all eyes on the cash burn flow associated with the 737 max and what i think is important for investors to understand is this is just a timing event the cash flow is still going to be realized. it's just going to be pushed back so investors are going to want to know the timing of boeing actually recouping that cash

flow that's the biggest thing to pay attention to long-term, this is a stock we want to hold we love their business mix over 20% of defense, they're in a dominant position and don't think the airlines are going to switch to airbus so we beat buyers on a pullback. >> thank you both. for more "trading nation," head to the web site or follow along on twitter at @tradingnation ahead on "power lunch," crude hitting the highest levels since october. the top commodity guide and how much higher to go. plus, who has your personal data turns out, a lot of companies do and they're making money off this we'll explain and we'll continue to watch the markets up more than 100 points right now, a few hundred from a record. all this when "power lunch" returns. >> and now, the latest from tradingnation.cnbc.com and a word from our sponsor. >> generally speaking, a strong dollar is good for the economy that doesn't mean all companies are going to benefit equally in fact, companies that do a lot

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i'm courtney reagan and here's your cnbc news update israeli prime minister benjamin netanyahu wants to build and dedicate to president trump. >> all deeply moved when president trump made a stark decision to recognize israel's sovereignty over the golan heights. i call for a new community on the golan heights named after president donald j. trump. >> the white house ordered trump administration officials to boycott the white house correspondents dinner according to the senior administration official he announced he'd be skipping the annual dinner for the third year in a row. johns hopkins university said doctors less likely to perform a potential life saving

procedure on the oldest heart attack patients. those 85 years and older less likely to receive angioplassy and stints even if likely to survive a heart attack if they had the procedure. but the cnbc news update at this hour, back to you, melissa. >> thank you, courtney reagan. about 90 minutes until the closing bell rings a quick check on the market rally and we're in record watch. s&p 500 specifically, high level, 2940 right now, we're just about 6 points away from that we're up 26 points on the session and down half a percent for 139 points and the nasdaq up strong 1.3% or 105 points the oil market closing for the day. let's get to dom chu at the cnbc commodity desk. >> another gain for crude oil prices the trend for the bulls, if you look at crude oil prices west texas intermediate. that's about a percent gain to the upside up $74.33. about hatlf a percent gain as

well and the story continues oil supplies an issue with the u.s. taking away waivers for iranian oil for the eight countries that previously got exemptions for that oil, pair that with some of the demand concerns out there as well and geopolitical risks, specifically with places like libya and you get the oil prices moving to the upside and this afternoon, american petroleum institute, supply numbers come out and then tomorrow morning, the official u.s. government department of energy inventory numbers as well back to you. >> thanks very much. talk more about this now and the u.s. tightening oil sanctions on iran means, how high will oil prices go from here? here for a "power lunch" exclusive. golden sachs thank you for being here. >> thank you for having me >> just to be safe today, quick question about today's price action is this because of the iran announcement or is oil actually rallying because global demand has looked firmer and the stock market too high? >> there's a follow-through. yesterday, we argued most was

priced in with the iranian sanctions. the market looked at when we saw investors looking at the relative value between wti and brent, you'll notice most of the rally today has been in wti. it's just, we think investors are looking, hey, you look at wti and so you're seeing more of the price in the wti you look at the upside in brent today, relatively minimal compared to the wti. >> now we look at the price $66 and change per barrel. huge rally this year but again, that just catch up because of the sell-off we saw previously >> you look at where we are today versus where we were six months ago you're still below where you were going into that potential shock from iranian sanctions the shock is smaller than what we saw six months ago. second is we now know that opec has that spare capacity. they ramped it up and took it back down. we think the shock is roughly 900 barrels a day and we saw

opec take 1.8 million barrels today off the market the third point is you have a lot of pipe capacity coming out later on this year which means the americans could add a lot of oil back on to the global market that's why we think, you price it in, move it up to the 74 or the 75 range and i'm talking brent here that's the thing to point to here price it into brent and look at the spreads on brent, probably priced it at roughly lly 500,00 barrel today, we think is reasonable a shock for two months because of the mismatch, saudis came out earlier today and said we'll respond as needed as opposed to to six months ago where they ramped it up real quick and took it back. >> in terms of investors with the some sort of catch-up with the relative to the spike we saw in brent each barrel is not interchangeable with the brent barrel we're talking it's heavy so to what extent is the notion

of a trade-in with wti relative to brent how is that valid? >> more that you had a bigger discount in a wti and i think part of it was the market was short wti, more than it was brent so there was just really more of a discount there i think the key point there though, you're hitting on the quality differentials we'd expect you buy, which is closer to the quality of the iranian barrels to outperform the sweet barrels. >> so how do you factor in the political risk involved with iran being angry that we're ending these waivers i mean, a threat to close has come across but let's say we don't do that because that's an extreme measure. let's say there's a disabled ship magically that prevents ships from passing through the channel or something else. >> the channels, really difficult to do with modern technology 50 years ago, it's done but not today. i think the real risk is more political disruption that is

smaller to play in places like saudi arabia and i think with news this morning of finding arms and other types of potential uprising that's a small type of insidious type of response you could probably -- >> be completely separate though from any tensions that might increase between the u.s. and iran separate middle east tensions. >> yes, but in terms of, you know, again, how much of this was anticipated. i would say the market was expecting to see roughly a $500,000 barrel per day decline and now 900 maybe. a lot of people are throwing out 800. it's not that far off of what expectations were. when you look at the rally, we rallied 2 bucks yesterday. it's not like we saw last year that went up to $86 a barrel. >> you think now maybe the highs for the year are somewhere around these levels? >> i'm not going to try, call it a top here you point out, the risk of

escalation, pushing it higher and it's still there but i think the key point is we have the capacity out there and we have the sdr and the pipelines are coming online and a lot of reasons to say, hey, we don't have a problem six months down the road and you could see the way the market traded yesterday. the back end stayed anchored and the front end up the markets see the problem for the next two months. but not a problem six months from now >> great stuff jeff, thanks so much >> thanks for having me. >> jeff of goldman rick santelli tracking action at the cme. >> hi, melissa lee we had a two year note option. my greatest, noteworthy about the option, let's look at the charts 10:00 eastern, the way the yield dropped the price rally? that would affect buying, right? why did it happen? this is key. look at the year-to-date chart of twos. everything on technicals in many ways, benchmarked what occurred

on january 3rd that low yield held up until not too long ago, 238. went below it. it started to fall away rather aggressively you can see what i'm talking about on the year-to-date chart there. let's move down the curve. if that's going to occur, the entire curve towards key technical levels, we may get lower rate on the 10 year, exact levels, round it up to 256 right where we've been hovering, both the short end and starts to creep down the long end, get below the technical level. look for yields to be totally uncooperative and the fact we're basically making the new all-time highs in the s&ps and the dollar index, somewhat of a rocket ship the last couple of days back to you. >> thank you so much, rick santelli every time you buy something online or in a store, you're creating data and someone is selling that data. who's doing it who's buying it? and how they're all profiting on you, that's next o"per nch.n ow

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that single act can create a mountain of data which is then collected by different companies and sold, sometimes to hedge funds. which are spending billions of dollars a year on data they're betting can get them a trading edge the simple premise, buying a pair of pants, breaking down all the players profiting from your data and how >> you're on your way to purchase something say a new pair of pants. park the car at the store and the space industry sees you pull up they sell data about that parking lot and thousands of others to a firm called orbital insight to analyze pictures to see where and when people are shopping, they say consumer traffic can get them an early sense of store sales and revenue ahead of earnings but doesn't end there. there are at least 100 apps including weather and traffic apps selling geolocation data from info about foot traffic and then insights like how many customers visited a store in any

given day and sell that to investors. when you purchase those, companies are tracking that too. providing consumer apps to some of the nation's largest banks and often gets access to the customer's credit card transaction history which then sells to investors that data is sold through services like intelligences and ro roll.me. your box of junk but then gets a look and then gather information about purchasing habits to sell the hedge funds. enro enro enroll.me and better believe a whole host of firms are scraping through instagram to gather sentiment data about the top retail brands. there are more than 400 firms collecting all types of data and selling that to investors.

some data are more helpful to hedge funds than others but if the industry continues to underperform, more about unique forms of data. >> let's talk more about this. bring in former administration assistant attorney general to the doj, national security division, and cnbc contributor, john carlin joining us now thank you for your time. >> thank you. >> what's your thought about, as we said, social media in a way made us aware there is when we turn over our personal information to use the service, people making money off of that data but increasingly, they're looking to allow people to opt out. what happens when i'm going to the store to buy a pair of pants? >> it's an excellent piece that you've done that shows what used to be the providence of big governments with vast buying apparatuses is the day-to-day of big business and what you're seeing is that information needs to be de-identified or anonmized

and then through brokers and used for competitive advantage by hedge funds it's a new world and there's very little in place that's concrete about what the rules of the road are >> hackers can do a lot thoicofs things, john what are the chances before that information gets anonmized or de-identified, i don't know, identity is stripped away from the actual data, it can actually be hacked into and used by bad actors >> i think cyber security is a real concern and you put your finger on it it may not just be the bad guy but the place you buy the information from has failed to adequately de-identify, to make the information separate from n individual person. that's one risk and then other one, is the bad guy gets the information and not interested on that but seeing whether there's a facility that they can

target for economic espionage or other purposes and the third and a warning to your watchers in the hedge fund industry would be, if you end up buying and not doing due diligence, information that has material non-public and quality to it, then it's just like any other insider trading case and you may find yourself on the wrong end of an investigation. >> that's interesting because it is data, it might be publicly available if you have a satellite or if you are a hedge fund who has access to purchasing it, is there a way for the public to be able to either opt in or not to the collection of the data or to profit from it >> the problem with opting in or not is that it's not transparent exactly how this data supply chain functions and who it gets sold to. you look at these privacy statements that, you know, you kind of check that box and it's a lot of legal language, oftentimes, they say they share the data they don't always even specify they're actually selling that data on down the chain and what he was mentioning with regard to

insider trading, oftentimes, we see hedge funds sign exclusive agreements with the data provider which a lot we're speaking to say that is a gray area from a legality standpoint because you basically have signed an exclusive agreement with the data provider to be the only entity that has access to viewing that kind of data. it raises a lot of questions about whether that's legal or not. >> so lawyers are bringing up the question of legality at this point. >> absolutely. the problem is the law is really unclear at this point, regarding so-called alternative data and the use of hedge funds people are trying to kind of figure it out as they go and hope they don't, you know, step on any land mines here but we talked to alternative data providers at some of the largest hedge funds that you and i both know very well. they have, you know, protocols to see through each step of the data collection process, but even for them, it's really, really difficult and hedge funds are concerned about a blowback

on a regulatory standpoint and a legal standpoint. >> it will just take a sheriff of a deputy of attorney general to make, decide that they want to set a precedent in this area. >> i'll say, talking to former leagues that are working as regulators and i think looking to make doing this and the privacy concerns, two, as we talked about, cyber security and three, it's reputational and what may seem okay today when pieces like yours really explain where the information is coming from and how it's being used and not be okay tomorrow, and the fourth is this so-called blue sky laws where you may see enforcement by state attorney general who say, this just looks unfair like you're gaining an unfair market advantage. >> john, before we let you go, we're hearing this hour that a former ge engineer and a chinese

businessman charged with economic espionage and theft of ge trade secrets all i can say is wow how big of a deal is this? >> this is an update in a case that i think is one of the top priority economic espionage cases for the justice department and it's part of they're trying to crack down initiative where they see a big risk to businesses today that the technology you're producing is targeted, stolen and then produced in china. >> and ge shares not moving too much, but like you said, more at stake for the country than maybe for the company. john carlin, thank you very much and leslie, thank you. important topic. we'll see what comes, appreciate it a little more than an hour to go until the closing bell s&p 500 with the all time high as well. the record breaking run as well next on "power lunch." i'm working to keep the fire going for another 150 years.

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markets continue to trade higher getting a boost from upbeat high-profile earnings today. let's bring in our director of floor operations of ubs financial services art, do you think we're going to hit 2940 >> well, i'd love to hit and

through 2940 and then close above the closing high that would be the double hit right now it looks like we may close above the closing high the indications for the market on closed orders are laeng to the buy side, maybe enough to give us one last final push. >> are there any concerns of yours in terms of the market and the character of the market at this point for instance, we have the russell. the russell is off 9% from its highs with the s&p 500 threatening to break its record high >> i think the separation here is a good deal of the market's hope is we reach some trade settlement with china, europe and resolve the situation. and that's to one degree why the russell's a little bit left behind the second part of it is that these are also very thin stocks and the trading is not big so people who are afraid of the risk of any kind of reversal are

staying away from them and into the multinationals >> art, in terms of looking at sort of the guts of this rally, so to speak, comparing transports to industrials, looking at defense names, whatever the case might be, can you help us evaluate whether you had i this has a lot of momentum behind it? >> well, it does there are some difficult parts to it. it's not having the kind of volume you like. pisani and i were having a discussion about that. and one of the reasons may be that stocks aren't splitting as much as they used to fay stock got to 100 they'd split it 2 for 1, 4 for 1, but now we're getting stocks trading at 300 we have stocks trading above $1,000 so that cuts down on the share volume so that may be distorting things slightly >> is it less convincing, art, if we do break through 2940 and it's on low volume, it's -- you know, all these different things >> as a very old-timer here, i

will tell you that i grew up with the theory that volume equals validity. if you see a lot of people into it then it puts the real credibility behind what's going on but as i say, because of the distortion, we've got unicorns and we've got stocks that aren't splitting. so i'll give the volume a bit of a pass for now get me the higher prices and i'll be happy. >> earlier dom mentioned the fact that pinterest and zoom are doing quite well on the session today. which is the tail and which is the dog? is the better stock market helping these recent ipos or is there success helping the market >> well, i think it's a little bit of both, but mostly the better market is helping the ipos there has been ascarcity factor the timing and pricing of what they do. we've had some very successful ipos down here and the prices have held. and i think ha then reverts to the rest of the market and they say you know, what that's a pretty good background, i think

i can buy into whatever i want >> art, great to speak with you. thanks so much art cashen, ubs. the s&p 500 hits 2935. >> don't go anywhere check please is still to come. and don't forget the 2019 cnbc stock draft is coming up right here thursday at 2:00 p.m. and this year there's a little extra twist. we'll explain that next. the ai i want? well, insurance it's all about trust and speed. i need it to guide this analyst to customize flood coverage for this house. so that this team, can inform this couple, that their payment will arrive faster than this guy. hey. ♪ ♪ so whether i'm processing claims due to this fine gentleman... (car engine starting) or suggesting premiums for this young lady... ai can help change everything at this company. expect more from ai. ibm watson.

check, please. >> make something kind of prediction about kevin o'leary's pics in the stock draft. >> we had oz pearlman on "power lunch" i want to say nine months ago or so, and he made some stunning predictions he had sealed up exactly the price of a stock we picked on set two weeks before, sent it to us in a fedex envelope, and it came true. so the moral to that story is you've got to watch the stock draft because whatever's in the envelope is going to be key.

>> i wonder what happens if he doesn't win the stock draft? >> then i think his reputation as a mentalist kind of -- >> i agree huge risk. >> that's another reason to watch. >> yes, it is. >> speaking of watching, i'm watching semiconductor stocks. they are higher today. we'll talk about chips poised to benefit off 5g >> and by the way, boeing's 50-day moving average is 59.95 >> "closing bell" starts now >> it is the final hour of trade. i'm wilfred frost. >> and i'm sara eisen. the s&p 500 on track to close at an all-time high this would be the first record close of the year. we'll see whether stocks can hold on to these gains in the final minutes of trade >> top fund manager david harrah will tell us where he sees opportunities with stocks at record highs >> another top fund manager will tell us whether value or growth could perform best in this market "closing bell" starts right now.